II nd Preliminary Paper 

TIME: - 3 hours                                                                                                                             MARKS: - 100


Q.1 (A) selects the suitable alternatives from the following and rewrites the following. Bismillah                                                                        5 marks
1.        A share Certificate must be signed by at least _________director. (one, two, three)
2.        Depositors are known as _________ of the company (debtor, creditors, members )
3.        A Company can accept the deposit or maximum period of __________months. (12, 24, 36)
4.        _____ Letter is sent by the company to the investor to whom the shares are allotted.(Allotment , Regret, Forfeiture)
5.        For transfer of paperless shares ___________is required. (dematerialization, fungibility, RTA)

(B) Match the Pairs   Bismillah                                                                                                                                                                                 5marks
Group a
Group B
1.        Equity shares
2.        Initial public offer
3.        Factoring
4.        SEBI
5.        Statutory Report
1.        Underwriting of shares
2.        Fluctuating market value
3.        Statutory meeting
4.        Report prepared by the accountants
5.        Interest at fluctuating rate
6.        Control over the stock exchange
7.        Newly incorporated company
8.        Representative of Depository
9.        Trade Debtors
10.     Trade Creditor

        (C) Fill in the blanks Bismillah                                                                                                                                                                        5 marks
1.        Dividend is declared by the shareholder at the ___________meeting.
2.        After dividend is declared, it must be distributed with in _________ days
3.        Depository is an institution which holds shares in ____________form.
4.        Voluntary surrender of shares means __________shares.
5.        Maximum period of Deposit is ___________.

Q. 2 write short notes any 3 Bismillah                                                                                                                                                                    15 marks
1.        Public Deposit
2.        Characteristic of Good Report
3.        Ploughing back of profits
4.        Register of debenture holder

 Q. 3 Distinguish Between any 3 Bismillah                                                                                                                                                              15 marks
1.        Share Holder V/S Debenture Holder
2.        Annual Report V/S Progress Report 
3.        Regret Letter V/S Forfeiture of Letter
4.        Surrender of Shares V/S Forfeiture of Shares

Q. 4 State whether the following are true or false (any three) Bismillah                                                                                                             15 Marks
1.        Irrespective of loss, a company is required to pay interest to the depositors. (pg no 120)
2.        National Stock Exchange is established for the safety of small investor
3.        Share warrant is non-transferable instrument
4.        The Register of members is only a Prima Facie evidence as to which persons are members of the company .

Q.5 Answer the following questions any two. Bismillah                                                                                                                                        10 marks
1.        Explain the Importance Role played by Stock Exchange of India
2.        Importance of Report Writing.
3.        Private Placement

Q. 6 Define Debenture? Explain its Types Bismillah                                                                                                                                               10 marks
        What do you mean by Ordinary Shares? Explain its characteristics. Bismillah    

Q. 7. Explain the Procedure involved in the Forfeiture of shares? Bismillah                                                                                                        10 marks
        What are the types of Dividend Policy? Bismillah    

Q. 8. Write a Letter informing about the forfeiture of shares? Bismillah                                                                                                                            10 marks